When the factory cost of production has been ascertained, manufactured goods are transferred to trading account by?
The correct answer is D. crediting manufacturing account and debiting trading account
When the factory cost of production has been ascertained, manufactured goods are transferred to the trading account by crediting the manufacturing account and debiting the trading account.
This is because the manufacturing account is credited to reduce its balance after the cost of the manufactured goods has been transferred out of it.
The trading account is debited to increase its balance with the cost of the goods now included in it.
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